Daniel W. Drezner

Wait, you mean that markets move towards equilibrium?

The New York Times’ Anand Giridharads loooks at how India’s outsourcing sector is maturing. He finds that — gasp! — Indian firms are outsourcing their outsourcing to other countries…. including, among others, the United States: Thousands of Indians report to Infosys Technologies? campus here to learn the finer points of programming. Lately, though, packs of ...

The New York Times’ Anand Giridharads loooks at how India’s outsourcing sector is maturing. He finds that — gasp! — Indian firms are outsourcing their outsourcing to other countries…. including, among others, the United States:

Thousands of Indians report to Infosys Technologies? campus here to learn the finer points of programming. Lately, though, packs of foreigners have been roaming the manicured lawns, too. Many of them are recent American college graduates, and some have even turned down job offers from coveted employers like Google. Instead, they accepted a novel assignment from Infosys, the Indian technology giant: fly here for six months of training, then return home to work in the company?s American back offices. India is outsourcing outsourcing. One of the constants of the global economy has been companies moving their tasks ? and jobs ? to India. But rising wages and a stronger currency here, demands for workers who speak languages other than English, and competition from countries looking to emulate India?s success as a back office ? including China, Morocco and Mexico ? are challenging that model…. In May, Tata Consultancy Service, Infosys?s Indian rival, announced a new back office in Guadalajara, Mexico; Tata already has 5,000 workers in Brazil, Chile and Uruguay. Cognizant Technology Solutions, with most of its operations in India, has now opened back offices in Phoenix and Shanghai. Wipro, another Indian technology services company, has outsourcing offices in Canada, China, Portugal, Romania and Saudi Arabia, among other locations. And last month, Wipro said it was opening a software development center in Atlanta that would hire 500 programmers in three years. In a poetic reflection of outsourcing?s new face, Wipro?s chairman, Azim Premji, told Wall Street analysts this year that he was considering hubs in Idaho and Virginia, in addition to Georgia, to take advantage of American ?states which are less developed.? (India?s per capita income is less than $1,000 a year.)

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